Bob Vavra

Hello, yeah, it's been a while. Not much, how 'bout you?
February 27, 2008

Before we start, the above headline is the opening line from a song from the 1970s. (I know you're all old enough, so don't be shy about admitting it). The first five people who email me with the song title will receive a free DVD from a recent Plant Engineering Webcast. Your choice of titles and topics, which you can check out here.

1. Coming out of hibernation… It’s been more than three weeks since the last posting. I’ve been on the road a lot, hearing about new technologies and solutions and strategies. There’s a lot of concern in the manufacturing sector, and we need to start using the ‘R’ Word – recession – as a way to understand how bad it is and what we need to do about it. The solutions ARE in place. They’re just not easy.

2. American Axle strike: This doesn’t help: The UAW strike against American Axle and Manufacturing has not put a crimp in General Motors’ supply chain just yet, but both sides appear to be hunkered down for a long fight over the fundamental issues facing the auto industry in the Rust Belt – job security and wage stability.

 
3. One important insight: Chuck Cassult, a 28-year UAW veteran at American Axle’s Three Rivers, MI plant, told the Kalamazoo Gazette that his issue was as such with the consistent level of sacrifice at all corners of the organization. “If they take major cuts in contract bargaining now, workers are worried about their position few years from now. I just don't see any sacrifice from the top people.” He said the workers are being asked to take pay cuts, but that executives have not made similar concessions.

4.  Fixing it, Part 1: The issue of wages is a negotiated one. The issue of quality and efficiency is another matter. This article from London, Ontario notes what we’ll point out again in the March issue of Plant Engineering – Lean manufacturing saves jobs, cuts costs and improves your facility’s ability to be competitive. So why isn’t everyone doing it?  Everyone who's doing well seems to be...

5. Fixing it, Part 2: Even as the toal number of jobs decline, manufacturers in Pennsylvania are growing and diversifying their operations and doing it with highly-skilled workers, according to an article in the Meadville Tribune. A study found the impediments to growth are (stop me if you’ve heard these before) a lack of working capital, poor business management skills, a lack of customer diversification, and a lack of competency in providing quality, reliable products quickly. But those have ALWAYS been the issues in manufacturing. What’s different today? Global competition. You have to understand the rules of the game have changed.

Posted by Bob Vavra on February 27, 2008 | Comments (0)